Even if you don't have enough employees to fill a double decker bus, you may still get a small group health insurance plan.
In California you can get a small group health insurance plan if you have a minimum of 2 employees working full time in either a business or non-profit organization. The important feature is that the health insurance is guarantee issue. In other words, employees and their dependents can not be denied coverage because of a pre-existing condition. Some carriers also offer small group plans to sole proprietors with no employees. As of July 1, 2012, all plans will include maternity benefits.
Below are some of the criteria for securing a small group plan for your business. Not every carrier has the same rules and plan designs will vary between the carriers.
Small Group Health Insurance outline
1. 2 or more full time employees working 30+ hours per week.
2. Some carriers will allow a sole proprietor with no employees if they meet certain revenue minimums listed on the Schedule C Federal tax form.
3. Eligible employees must be listed on the last quarters DE-9C.
4. Partners in the company, not listed on the DE-9C, are eligible but must fill out a Partner Statement.
5. The employer can make insurance available to employees working as few as 20 hours per week.
6. The employer can state how long an employee must be employed before the group insurance is offered.
7. The employer must contribute a set dollar amount or percentage towards all employees’ health insurance premiums.
8. The employer doesn’t have to make any contribution towards the employee’s dependents premium.
9. Depending on the size of the group and employee participation more than one plan or carrier may be offered to eligible employees.
10. Health insurance premiums are pre-tax amounts which lowers certain state and Federal withholding taxes.
11. Some small businesses and non-profits are eligible for tax credits based upon their
Executive Directors and business owners want to offer health insurance to their employees, but it can be a challenge to set up.
contribution towards their employee’s health insurance premiums.
12. Dental, vision and life insurance may also be added and some programs require no employer contribution.
Need more information, contact me and we can evaluate your situation to see if your group qualifies for guarantee issue small group health insurance.
